The Benefits of Digital Signatures for GCC Countries

It is a rational move to start digitising most, if not all, company processes considering the current workplace sphere. With a slew of testaments backing going digital, companies proactively seek the best tools to equip this transformation, especially for aspects pertinent to business operations. This may include using board management software for meetings and even upgrading your document collaboration experience with digital signature tools.

What is a digital signature?

Competing with the speed at which new technologies are released are hackers and scammers devising ways to exploit their weak spots. Thus, it is unsurprising that the tech industry works twice as hard to churn out products that can one-up what is already on the market — similar to how electronic signatures (e-Signatures) were developed to adapt to the shift toward digitalisation. With security being a growing concern for e-Signatures despite their convenience, digital signatures have become a necessary innovation.

Electronic vs Digital Signature

You may think that e-Signature and digital signature are interchangeable, but they are not. It is easy to confuse one with the other, especially since both pertain to something that can be carried out electronically. e-Signature is an all-encompassing term which refers to any signature affixed to an electronic document to show approval or agreement, whereas a digital signature is a more secure form of e-Signature.

e-Signature can simply be signing a document by inserting an image of your signature or typing out your name in a stylised font. Meanwhile, digital signatures offer extra layers of security. Digital signing is usually done through a platform. It uses mathematical algorithms and encryption to authenticate the signer and the document. A digital signature certificate is also produced once a document is signed to certify its authenticity.

Where are digital signatures usually used?

With digitalisation becoming more of a norm, it is only natural that electronic forms of procedures once manually accomplished be accepted as legal in more transactions. Hence, e-Signatures and digital signatures are now commonly used to sign board documents such as board resolutions and meeting minutes, legal documents like contracts, invoices, financial documents, etc. Since a digital signature offers an appended digital certificate, it is more credible and legally binding for sensitive data than just your typical e-Signature.

The UAE Regulations on Digital Signatures

Countries in the GCC region are keen on exploring the abundant options offered by digitisation that can benefit their culture, compliance, and economy. In the UAE specifically, efforts to digitise everything by 2025 have already been put into motion. Therefore, it is understandable that emphasis is being placed on reinforcing laws concerning electronic transactions, especially e-Signatures and digital signatures.

In fact, several developments have already been made regarding these. Previously, the UAE had three main laws and regulations governing the use of e-Signatures and digital signatures:

• Law No. (1) of 2006 On Electronic Commerce and Transactions (or the Electronic Transactions Law)
• Minister of Economy Resolution No. 1 of 2008, issuing the list of the Electronic Certification Services Providers
• Federal Law No. 10 of 1992 concerning the Law of Evidence in Civil and Commercial Transactions (amended by Federal Law No. (36) of 2006

These three were the main references for how electronic signature is defined and used, the licensing of certification services providers, and the probative value of electronic signatures, respectively.

Last September 2021, the Electronic Transactions and Trust Services Law was issued to repeal the Electronic Transactions Law. This new law aims to promote and strengthen the legality of electronic transactions. Moreover, the improved version of licensing processes for trust service providers or those who can create, validate, and preserve eSignatures, eSeals, and digital certifications are laid out.

The Benefits of Using Digital Signature

Let digital signature be your aid in keeping up with the fast-paced digital industry with its benefits:

Higher Security

While your typical electronic signature is already a step up in terms of security from the manual wet signature, a digital signature offers an even better robust security upgrade. Digital signatures require signers to authenticate their identity before signing. This may be through passwords, codes, etc. An activity trail for the date and time of signing is also available to ensure transparency.

Legal Compliance

e-Signatures have long been accepted as legal in several countries. However, digital signature providers follow a more stringent set of standards and pass several certifications or licensing, which further legitimises its admissibility in court. Not to mention that its transparency makes it easier for audit and compliance. Moreover, the digital certificate appended to a document once signed makes digital signatures’ probative value more significant.

Workflow Automation

Digital signatures can help eliminate the need to send and check the status of a document manually. All these can efficiently be managed and tracked without using several means since all can be done in one platform. Signers can sign a document with a click of a button and you can get it back instantly afterwards. You can also now do away with the worry of accidentally losing the document in the process.

Cost Savings

Aside from saying goodbye to the extra effort associated with manually having a document signed, the extra costs of printing and shipping out a document can also become a thing of the past. Digital signatures can be your investment in pursuing digital transformation while upholding security, transparency, and accountability.

With the numerous important dependencies connected to signing, it’s only reasonable that streamlining it should now be one of your priorities, and Convene e-Signature can be just the tool for that. Signatures can be affixed with a tap of a button which is synced in real-time keeping everyone updated. Furthermore, since signatures are considered final and are stamped with the date and time, it can also be your ally in promoting organisation transparency.

Learn more about Convene e-Signature and how it can help your organisation towards better corporate governance.